By Kothrud Next - we are not referring to Bhugaon or Bhukum!
- was the first sentence in the body copy of the launch ad.

If not Bhugaon or Bhukum - then what? Pirangut? I asked myself and read the site address at the bottom of the ad - Survey Number 33, Bavdhan, opposite PVPIT College, near Chandani Chowk, Pune 411 021.

Okay. Fine. The people who love Kothrud - but can not afford to own a home in Kothrud - are the target flat buyers of Feel Bliss. After reading rest of the blah blah blah in the ad - I realized.

Along with the location - near Kothrud - the main reason to rush to book a flat - 1 BHK - 2 BHK or 3 BHK - at Feel Bliss was the launch offer -
"Just Pay 10 % to Own Your Home - Remaining Amount & EMI After Possession"!

The builders of Feel Bliss knew how "intelligent" their target property buyers were -
so, they went ahead and explained the "benefits" of the launch offer -
1) Benefit of 10 to 15 Lakhs.
2) You don't have to pay house rent & EMI simultaneously
3) It is a great opportunity for investment.
4) No floor rise cost for first 25 lucky customers.

Not only that! The builder gave the table of property prices for - 1 to 25, 26 to 50 & 51 to 100 Bookings!!

You know? I found it difficult to accept that there are only 100 stupid, shameless, and shallow people who will believe that the launch offer of Feel Bliss is beneficial for them.

I know for sure that there are more number of stupid, shameless, and shallow people in Pune than the entire population of the city.

It means that - I told myself - there would be a huge crowd at the site all day long.

To avoid meeting stupid, shameless, and shallow people who believe in the benefits of the launch offer of Feel Bliss - I visited the site after sunset.

And you know what?

At the site office of Feel Bliss, I met some of the smartest people in Pune real estate market - Mr. Aditya Joshi, Kalyan Deshmukh & Ashok Suryavanshi. Aditya & Ashok are civil engineers and Kalyan is in sales & marketing. This is Aditya's first job after the graduation. But Ashok is in construction for more than 12 years. Kalyan also has more than 15 years experience in property sales & marketing.

All of them praised their bosses - particularly Mr. Gaurav Gadiya of Ravima Ventures - who is responsible for Feel Bliss. Gaurav was with Raviraj Group for a long time. Three of them explained how Gaurav's interest & involvement in planning is reflected in Feel Bliss. His first independent venture.

In fact, the one who stopped the car and met you at the entrance - when you entered the site - was Mr. Gaurav Gadiya! Ashok told me.

Really! How sad!! I missed an opportunity to chat with him!! I told them.

I missed an opportunity to find out the exact number of stupid, shameless, and shallow people who believed in the benefits of the launch offer of Feel Bliss and booked the flats. I told myself.

If you want my advice, feel free to call me on 919860044110. First 3 minutes are free! And for more than 3 minutes - pay as you wish - you decide the value of my advice.

Of course, for a serious discussion, better fix an appointment at a time convenient to both of us. So that we can have uninterrupted & in depth discussion on my mobile (919860044110)
- on Video Hangout on Google+
- or on Skype (ravikarandeekar) .

For more than 3 minutes and up to 30 minutes - pay as you wish. After the conversation - transfer the money to my bank account. As much as you wish. From a few hundred to a few hundred thousand crore of U S Dollars or Indian Rupees. Here are my bank account details:

Yes, and price which they are asking is so high that one can buy ready for possession flat is good locality with livable infrastructure. I don't know what's the use of buying a 3BHK flat for Rs. 1Cr when ample of options are available even at cheaper rates at better location. On one hand, builders do such gimmicks & on other complaint that sales are not happening !

What this builder is doing here is offering interest sub-vention scheme. This is usually done by cash strapped builders or by those builders who don't have enough credibility to take loans from banks. Such schemes help builder to make profits by using buyers own money, without the need to deliver the project on time. Lot of risks are associated for the buyers, some are mentioned as -

EMI Default by Builder impact CIBIL Score of a Buyer :

It is very difficult to ensure whether builder is paying EMI on time or not. Buyers understanding of “NO EMI for X No. of Months” is that there is No EMI payment to Bank / HFC. Fact of the matter is that builder has to pay Pre-EMI on behalf of buyer. By handing over key of your CIBIL Score to builder, you are taking huge credit risk.

Lock in Period:

In most of the Subvention Schemes there is a lock in period. During Lock in period buyer cannot sell the property. Risk is if you would like to exit during lock in period then you cannot exit thus your money is locked. Even if there is no lock in period, penalty of exit is very steep. In some cases, it is as high as 5 Lakhs.

Taxation Issues:

Under Subvention Scheme there are lot of taxation issues like whether TDS u/s 194IA is applicable or not. Reason being, Buyer is not paying the installment to bank but builder is paying. Secondly, whether any payment from builder to bank will be considered as income for buyer or not. Lastly, whether buyer can claim tax deduction u/s 24(B) on Pre-EMI interest paid by the builder. Kindly clarify all such taxation issues.

Delay in Project not covered under No EMI till possession offer :

Eg. If a buyer is availing Subvention Scheme in Dec 15. Builder will mention projected possession date as Dec 17 and EMI Holiday is of 24 months. Technically builder is right that there is “NO EMI TILL POSSESSION“. But if there is delay in project, the cost of property will increase exponentially for buyer. All the benefits of Subvention Scheme will wipe off in few months. Secondly, in case of delay and after EMI holiday period buyer may find it difficult to pay Pre-EMI. This is one of the key reason for default on Home Loan. Normally builders put onus on delay in obtaining Govt approvals for delay in project therefore it is advisable to opt for subvention scheme only when all govt approvals are in place. Though builders put penalty clause for delay but enforcement of such clauses is next to impossible. Couple of Govt Approvals are intentionally kept pending to avoid penalty for delay.

So what's the solution in this case ?The builder here is quoting prices which are as much as for flats which are ready for possession, with approvals & located at far more livable area. So, it's best to buy ready for possession flats, you neither have to pay rent + emi, there is no risk of delay & no issue related to taxation either. Enjoy the flat with 0% tension.